MFG 0.71% $9.92 magellan financial group limited

Ann: Funds Under Management - June 2022, page-41

  1. 10,278 Posts.
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    The ongoing bleed in FUM isn't exactly surprising, you can see that built into analyst estimates whom are not expecting things to turnaround until FY25:

    https://hotcopper.com.au/data/attachments/4493/4493253-6d0939442108b16a870f055e5f1ee7ee.jpg

    Whilst there are risks, there are also opportunities, the forward 2 year earnings multiple (currently the expected FY24 trough) is near the lowest on record for MFG:

    https://hotcopper.com.au/data/attachments/4493/4493247-d279f1de0aff1d654cfd23f0749857fe.jpg

    If that FY24 earnings expectation can stabilised and there is a return to expected growth in the future, there is an easy 80% gain just for MFG to return to a more normal earnings multiple.

    Of course chasing that potential gain comes with significant risk, but for me, it's worth the bet.

    Last edited by convexity: 08/07/22
 
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